ABSTRACT

Demands on nonprofits to rigorously measure performance and demonstrate effectiveness have not abated despite acknowledged difficulty with the process. Before performance can be productively analyzed, a nonprofit must examine its logic model or the steps leading from mission statement to mission achievement, as well as its predisposition to measurement. Only then can the tenets of performance measurement (PM) be effectively adopted. Critical components include clear links between outputs and outcomes as well as the role of budgeting in PM.